JGJC(000799) INDUSTRIAL SECURITIES·2024-08-31 06:09Investment Rating - The report maintains an "Accumulate" rating for the company [3][6][9] Core Views - The company reported a significant decline in revenue and net profit for the first half of 2024, with revenue at 994 million yuan, down 35.50% year-on-year, and net profit at 121 million yuan, down 71.32% year-on-year [3][4] - The second quarter showed a revenue of 500 million yuan, reflecting a year-on-year increase of 13.27%, while net profit was 48 million yuan, down 60.87% year-on-year [3][4] - The company is actively pursuing marketing transformation and has seen a substantial increase in consumer engagement through activities such as scanning and banquet events [4][6] Financial Performance Summary - For the first half of 2024, the company experienced a revenue decline of 48.80% in Q1 and a reduced decline of 13.27% in Q2, indicating a gradual recovery [4][6] - The revenue breakdown shows significant declines in certain product lines, with "Neican" down 60.85% and "Jiugui" down 30.11%, while "Xiangquan" saw a growth of 36.33% [4] - The company’s gross margin decreased to 75.59% in Q2, down 2.23 percentage points year-on-year, attributed to a higher proportion of lower-priced products [5][6] Profitability and Forecast - The net profit margin for Q2 was 9.52%, down 11.59 percentage points year-on-year, due to rising expense ratios [5] - The report projects revenues for 2024, 2025, and 2026 to be 2,402 million yuan, 2,644 million yuan, and 2,981 million yuan respectively, with corresponding net profits of 312 million yuan, 359 million yuan, and 423 million yuan [6][7] - Earnings per share (EPS) are forecasted to be 0.96 yuan, 1.10 yuan, and 1.30 yuan for the years 2024, 2025, and 2026 respectively [7]